SCK.MI WACC - Weighted Average Cost of Capital

The WACC of Sciuker Frames SpA (SCK.MI) is 13.5%.

The Cost of Equity of Sciuker Frames SpA (SCK.MI) is 20.15%.

The Cost of Debt of Sciuker Frames SpA (SCK.MI) is 16.20%.

	Range	Selected
Cost of equity	15.60% - 24.70%	20.15%
Tax rate	24.00% - 24.00%	24.00%
Cost of debt	15.40% - 17.00%	16.20%
WACC	12.3% - 14.7%	13.5%

WACC

SCK.MI WACC calculation

Category	Low	High

Long-term bond rate	3.7%	4.2%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.44	2.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.60%	24.70%

Tax rate	24.00%	24.00%
Debt/Equity ratio	5.68	5.68
Cost of debt	15.40%	17.00%

After-tax WACC	12.3%	14.7%


Selected WACC	13.5%

SCK.MI's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for SCK.MI:

cost_of_equity (20.15%) = risk_free_rate (3.95%) + equity_risk_premium (8.80%) * adjusted_beta (1.44) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.